ASX BookBuild®
Investor Information Sheet
What is ASX BookBuild?
How do I participate in ASX BookBuild?
•An additional tool for brokers and investment banks
to consider when advising listed entities, or entities
seeking to list, on how to price and allocate new
securities using ASX infrastructure and an allocation
method based on OMB’s intellectual property
•Whilst the bookbuild is open, your broker can enter,
amend or cancel bids on your behalf
•All eligible investors can access the bookbuild via their
ASX broker
What do I need to do to participate in ASX
BookBuild?
•1) All eligible investors can enter a bid into a bookbuild
via their ASX Broker
•2) Eligibility will be determined by the terms of the offer
–F
or example, if the offer is not being offered to Retail
Investors, a Retail Investor cannot participate in the
bookbuild
– You
should contact your broker to determine whether
you are eligible or not to participate in a particular
bookbuild
•3) To participate in a bookbuild, you need to enter into
an ASX BookBuild Client Agreement with your broker
–T
his is a standing agreement that will allow you
to participate in any bookbuild conducted on ASX
BookBuild for which you are eligible
–Y
ou should ensure you enter into this agreement or
include the terms in an existing agreement with your
broker in advance of any bookbuild
•4) You can then instruct your broker to submit a bid
into a bookbuild on your behalf as you normally would
for the equity market. You should contact your broker
for any specific terms, conditions or processes they
may require you to comply with in order to enter a bid
on your behalf. Note that under the ASX BookBuild
Client Agreement, where you have received an
allocation of financial products as a result of a bid
entered on your behalf by your ASX broker, you have
an obligation to subscribe for the number of financial
products allocated to you at the final bookbuild price on
the terms of the offer.
• If you wish to enter multiple bids at different price/
quantity levels, you should instruct your broker to
enter individual orders at the relevant price/quantity.
Please note: allocations will be performed against
each individual bid.
•If you want to enter a single bid but want that bid to
change as the bookbuild price changes (i.e. change
either price or quantity or both) you will need to contact
your broker to amend the indivdual bid on your behalf
•The bookbuild price will be disseminated live via external
trading systems
•The company will make important announcements
about the bookbuild via the ASX Market
Announcements Platform (MAP) under the
company’s ASX security code. You should read those
announcements. They are made available on the ASX
website.
•If your bid is successful and you receive an allocation,
your broker will be notified. Your broker will then
contact you to arrange payment and co-ordinate
settlement on your behalf. Note: this process will
be performed according to the processes of your
individual broker. You should contact them for further
information.
ASX BookBuild Fact Sheet
How
will ASX BookBuild work?
How will ASX BookBuild work?
1.
1
Company decides to do a capital raising using
ASX BookBuild. Appoints Technical Lead
Manager (TLM)1
2
2.
Company and TLM set bookbuild parameters
3.
3
TLM submits Priority Bids (both First and
Second) and initiates open of ASX BookBuild
4
4.
Participants submit bids on behalf of eligible
investors & TLM may amend pricing and
allocation parameters
5
5.
ASX BookBuild determines live bookbuild price
which is visible to the market
6.
6
Company and TLM initiate close function once
satisfied with price
7
7.
Allocations are made to bidders who are at or
above the final bookbuild price
Company
ASX BookBuild
announcement
Underwriting &
management
agreement
Submit
bookbuild
parameters
Technical
Lead
Manager
& Priority Bids
& other bids
ASX BookBuild
Facility
Broker 1
Bids
Settlement
Broker 4
Settlement &
CHESS PMF
Broker X
Bids
Notification
Bids
Priority Bids
Registry /
Custodian
On-Market
Bidders
(All Eligible
Investors)
Stage 1 – First Priority bidders
Stage 2 – Second Priority bidders
Stage 3 – Price leaders
Stage 4 – Remainder of bids
8
8.
Settlement can occur through CHESS PMF &
notifications sent to custodians / registries
Broker 2
Broker 3
1. Multiple lead managers may be appointed, one of which acts as TLM and interacts with ASX for the purposes of ASX BookBuild. The TLM must be an ASX Trading Participant.
3
Note that while ASX BookBuild may be used to price and allocate new securities, quotation of such securities is subject to satisfaction of requirements for quotation (and in
the case of an IPO, for admission of the entity to the official list) under the ASX Listing Rules. In order to seek to have quotation granted to the securities offered using ASX
Bookbuild, an Issuer must attend to the relevant Listing Rule requirements at the appropriate times in the usual way, as well as carrying out its responsibilities in relation
to ASX Bookbuild. Accordingly, the use of ASX BookBuild in no way represents or guarantees that such securities will be quoted on ASX, or, in the case of an IPO, that the
entity will be admitted to its official list.
Fees
• There are no fees imposed directly by ASX on investors that participate in ASX BookBuild
• You should contact your broker for any specific fees that they may charge
Further Information
www.asx.com.au/bookbuild
www.onmarketbookbuilds.com
Contact
Marcus Christoe
Senior Manager, Funds & Investment Products
[email protected]
+61 2 9227 0237
Ben Bucknell
CEO, On-Market BookBuilds
[email protected]
+61 2 8211 2773
Disclaimer: Information is provided to give an overview of the features of ASX BookBuild and may be subject to change. It does not
constitute financial product advice. To the extent permitted by law, ASX Limited ABN 98 008 624 691 and its related bodies corporate
(“ASX”) and On-Market BookBuilds Pty Ltd and their respective employees, officers and contractors shall not be liable for any loss or damage
arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from any one acting or
refraining to act in reliance on this information. This document is not a substitute for the Operating Rules of the relevant ASX entity and in
the case of any inconsistency, the Operating Rules prevail.
© Copyright 2014 ASX Operations Pty Limited ABN 42 004 523 782 and On-Market BookBuilds Pty Ltd ABN 31 140 632 024.
All rights reserved 2014.